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Answer with Explanation:

"Social grants" are supports coming from the state which aids people who are having a hard time providing themselves.

The increasing the number of social grants will enable many people to access greater support, especially those who are poor, old, unemployed and have many children.

On the contrary, an increasing number of social grants will result to a higher dependence of unemployed people. People will also feel more entitled to have access the social grants than before, thus making them more lazy in striving to work.

One example of this is South Africa. The higher the number of families who receive the grants, particularly in rural areas, the lower the number of people who join the low-level farming livelihoods. This means that social grants increases the "reservation wage" of low-income families, thus they become less motivated to earn. This results to a higher unemployment rate.

Social grants are defined as the place to enhance the standards of living in a society, which is more vulnerable to poverty and is in a state of support.

The impact of an increasing number of social grants on the unemployment rate can be explained as:

What are social grants?

  • Social grants are the support that comes from the people or states that help in improving the living standards of the society and people.

  • The increasing social grants will result in the higher dependence of unemployed citizens. The people will be entitled to have improved living conditions that will make them lazy to work and unemployed.

  • The social grants in South Africa have resulted in a high unemployment rate. The social grants generate the reservation wage for the low-income families, rural societies, and make them less motivated to be employed.

Thus, the social grants result in a high unemployment rate.

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